Kitchens firm warns of lower revenues in second half

Howden Joinery Group has warned of a 2% fall in UK revenue in the last five months compared to the same period last year, in a trading update which cites economic headwinds.

The firm’s international revenues rose by 5.7% over the same period. Both revenue streams remain significantly higher than before the pandemic. The firm said its board stands by its predictions for full-year results, but actual revenues are likely to be at the lower end of the expected range due to the uncertain economic outlook.

Chief executive Andrew Livingston said, “Howdens has continued to trade well since the half year and has gained market share. UK depot sales during our peak trading period remained consistent with last year’s record performance. This was a significant achievement by our teams given the macro-economic headwinds and demonstrates the value of our culture and a differentiated business model. Our balance sheet and cash generation remain strong and we continue to invest in our strategic initiatives to develop the operating model, which strengthens our competitive advantage.”

The firm said strong sales in the final few days of the period include a higher proportion of made-to-order products, where lead times are longer, and these will be reflected in subsequent periods. The figures do not inlude non-recurring third party trade sales in the Sheridans business which Howdens acquired last year.